Xcel Energy 2010 Annual Report Download - page 28

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● PCCA — The PCCA allows for recovery of purchased capacity payments for power purchase agreements. Effective
January 2011, the PCCA recovers the revenue requirement associated with the purchase of two facilities formerly under
power purchase agreement: Blue Spruce Energy Center and Rocky Mountain Energy Center.
● SCA — The SCA allows PSCo to recover the difference between its actual cost of fuel and the amount of these costs
recovered under its base steam service rates. The SCA rate is revised annually on Jan. 1, as well as on an interim basis to
coincide with changes in fuel costs.
● DSMCA — The DSMCA clause permits PSCo to recover DSM and interruptible service option credit costs on a
concurrent basis and performance initiatives based on achieving various energy savings goals. Beginning 2010, the
CPUC approved recovery of the full amount of DSM-related costs through the combination of base rates and a DSMCA
tracker mechanism.
● RESA — The RESA recovers the incremental costs of compliance with the RES and is set at its maximum level of
2 percent of the customer’s total bill.
● Wind Source Service — The Wind Source Service is a premium service for those customers who voluntarily choose to
contribute funds for the acquisition of additional renewable resources beyond the level of PSCo’s resource plan. Wind
Energy Service customers pay a charge that is in addition to the rates paid by other customers.
● TCA — The TCA provides for the recovery outside of rate cases of transmission plant revenue requirements and allows
for a return on CWIP for transmission investments.
PSCo recovers fuel and purchased energy costs from its wholesale electric customers through a fuel cost adjustment clause
approved by the FERC. PSCo’s wholesale customers have agreed to pay the full cost of renewable energy purchase and
generation costs through a fuel clause and in exchange receive renewable energy credits associated with those resources.
PBRP and QSP Requirements — PSCo currently operates under an electric PBRP. This regulatory plan includes an electric QSP
that provides for bill credits to customers if PSCo does not achieve certain performance targets relating to electric reliability and
customer service through 2012. PSCo regularly monitors and records as necessary an estimated customer refund obligation under
the PBRP. In April of each year following the measurement period, PSCo files its proposed rate adjustment under the PBRP. The
CPUC conducts proceedings to review and approve these rate adjustments annually.
Capacity and Demand
Uninterrupted system peak demand for PSCo’s electric utility for each of the last three years and the forecast for 2011, assuming
normal weather, is listed below.
System Peak Demand (in MW)
2008 2009 2010 2011
PSCo ...............................................
.
6,903 6,258 6,401 6,521
The peak demand for PSCo’s system typically occurs in the summer. The 2010 uninterrupted system peak demand for PSCo
occurred on July 14, 2010.
Energy Sources and Related Transmission Initiatives
PSCo expects to meet its system capacity requirements through existing electric generating stations, power purchases, new
generation facilities, DSM options and phased expansion of existing generation at select power plants.
Purchased Transmission Services — In addition to using its own transmission system, PSCo has contracts with regional
transmission service providers to deliver power and energy to PSCo’s customers.
Purchased Power — PSCo has contracts to purchase power from other utilities and independent power producers. Long-term
purchase power contracts typically require a periodic payment to secure the capacity and a charge for the associated energy
actually purchased.
PSCo also makes short-term purchases to replace generation from company-owned units that are unavailable due to maintenance
and unplanned outages, to comply with minimum availability requirements, to obtain energy at a lower cost and for various other
operating requirements.
Resource Plan — In October 2009, the CPUC approved PSCo’s resource plan which includes 900 MW of additional intermittent
renewable energy resources (wind and PV solar) and approximately 280 MW of “new technology” renewable energy sources.
The CPUC also approved the selection of approximately 900 MW of traditional gas-fired resources.